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Cramer: IBM is not a Warren Buffett story anymore but about 'reignition of earnings'

  • IBM has successfully managed to shift the story about its stock from Warren Buffett to earnings, Jim Cramer says.
  • "It's about a discussion of reignition of earnings," Cramer says after IBM beat forecasts in its quarterly results.

IBM has successfully managed to shift the story about its stock from billionaire investor Warren Buffett to earnings, CNBC's Jim Cramer said Wednesday.

Shares of IBM were up 9 percent midmorning Wednesday, lifting the Dow Jones industrial average after the tech giant reported better-than-expected quarterly results the day before.

Earlier this year, Buffett, chairman and CEO of Berkshire Hathaway, spoke about a decision to dump his IBM shares.

In an interview with CNBC, Buffett said: "I don't value IBM the same way that I did six years ago when I started buying ... I've revalued it somewhat downward."

"When it got above $180 we actually sold a reasonable amount of stock," the billionaire investor added.

But, after the company's earnings, Cramer says the talk surrounding Buffett is over and "the IBM story is back."

"It's not a discussion about Buffett anymore," Cramer said on "Squawk on the Street." "It's about a discussion of reignition of earnings."

Cramer was also particularly pleased with IBM's revenue growth. The company came close to stopping the drought of revenue growth that has lasted 21 quarters.

"The next quarter is going to have the revenue up. The streak is going to break," Cramer said. "[CFO Martin Schroeter] is underpromising. He's going to overdeliver. Next year is going to be terrific."

Programming note: IBM's chief financial officer, Martin Schroeter, will make an appearance Wednesday on CNBC's "Mad Money" at 6 p.m. ET.

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